FTTH Business Guide - AWT.be

Community benefits
Communities with FTTH can obtain genuine advantages because they will be able
to access a wider range of internet services. Examples of potential benefits that
FTTH networks can generate include:
� boosting economic growth and increasing the global competitiveness of
the community’s business base;
� enhancing a community’s ability to attract and retain new businesses;
� increased efficiency in the delivery of public services, including education
and healthcare;
� enhancing the overall quality of life of the community’s citizens, by
increasing the opportunities for communication; and
� reducing traffic congestion and pollution.
Quantifying these benefits in isolation is challenging. A number of studies have
observed a statistical connection between higher broadband adoption and an
increase in economic prosperity at both local and national level. Evidence-based
studies on FTTH have not yet been carried out because the technology has not
been mainstream for long enough; it is anticipated that real-world analysis on the
economic impact of FTTH will be carried out in due course. However, several
reports have attempted to make sensible predictions on the impact of FTTH
networks on job creation and GDP.
For example, the Columbia Institute for Tele-Information (CITI) made a
quantitative analysis of the macroeconomic impact of investment in broadband
infrastructure in Germany. To meet Germany’s national target of providing 50
percent of households with at least 100 Mbps and an additional 30 percent with
50 Mbps by 2020 would require investment of €36 billion, they said. This would
create an extra 541,000 direct jobs in construction and electronic industries, while
job creation triggered by enhanced innovation with new services, would create
additional employment amounting another 427,000 jobs. The impact on GDP in
Germany is estimated to be €171 billion between 2010 and 2020 which amounts
to 0.6 percent of annual GDP.
A recent study by Ovum for the FTTH Council Europe looked at the socio-economic
benefits of FTTH across different communities in Sweden, and found evidence that
FTTH has a positive influence on health, education and other public services. For
example, in Hudiksvall, a town on the Baltic Sea coast with around 15,000
inhabitants, there was a clear link between rollout of fibre to the community, and
the ability to attract new businesses to the area. The study suggests the impact
will be greatest in rural areas where there are limited local resources and endusers
face significant travel requirements.
18 www.ftthcouncil.eu